FX.co ★ CL/Crude Oil

WTI crude oil prices stabilized around $68.95 on Thursday, despite a slight increase in US crude oil inventories reported by the Energy Information Administration (EIA). The market's focus remains on geopolitical tensions between Russia and Ukraine, which could potentially disrupt oil supplies. The EIA reported a 545,000-barrel increase in US crude oil inventories, which was below market expectations. However, this increase was overshadowed by concerns about weaker global oil demand, particularly from China. Chinese crude oil demand fell by 5.4% year-on-year in October, and the International Energy Agency has lowered its forecast for Chinese oil demand growth in 2023. The escalating conflict between Russia and Ukraine has introduced supply-side risks, which could potentially support oil prices. However, the impact of these risks is being offset by weaker global demand.

From a technical perspective, WTI crude oil prices remain in a bearish trend. The price has broken below key moving averages and is trading near the lower end of its three-year range. The $67.00 level is a crucial support level, and a break below this level could lead to further declines. On the upside, the $70.07 level is acting as a significant resistance level. A break above this level could signal a potential reversal of the downtrend. However, the overall technical outlook remains bearish, and traders should exercise caution when taking long positions. In conclusion, the outlook for crude oil prices remains uncertain, with both bullish and bearish factors at play. Geopolitical tensions and global demand are key factors that could influence oil prices in the near future. Traders should closely monitor economic data releases, central bank policies, and geopolitical events for potential shifts in the oil market.